The liquidity of a stock is an important parameter that investors should consider while adding stocks to their portfolios. Liquidity primarily determines a company’s capability to meet debt ...

Hence, a range of 1-3 is considered ideal. Quick Ratio: Unlike the current ratio, the quick ratio — the “acid-test ratio” or “quick assets ratio” — indicates a company’s ability to ...

The quick ratio evaluates a company's ability to meet its current obligations using its most liquid assets. The quick ratio measures a company’s ability to immediately meet its short-term ...

Comparing the Current Ratio with other liquidity ratios, like the Quick Ratio or the Cash Ratio, can offer a more nuanced view of a company’s financial health. The Quick Ratio, for example ...

Hence, a range of 1-3 is considered ideal. Quick Ratio: Unlike the current ratio, the quick ratio — the “acid-test ratio” or “quick assets ratio” — indicates a company’s ability to ...

Important types include the cash ratio, quick ratio, current ratio, and operating cash flow ratio. A liquidity ratio above 1 suggests financial health and ability to meet immediate obligations.

Rachael has a Bachelor’s degree in mass media from Wilson College, Mumbai and a Master’s degree in English from Pune University. One critical component of investing in the stock market is ...

The quick ratio formula includes cash and equivalents, marketable securities, and accounts receivable and compares those figures to a company's current liabilities. Here is the formula ...

The formula for the cash ratio is: cash ratio = (cash + cash equivalents) / current liabilities The quick ratio is the next level of a liquidity ratio. It adds a company’s accounts receivable to ...

The quick ratio is often referred to as the acid test because it offers a strong glimpse of your business's ability to liquidate assets. The current ratio, which divides current assets by current ...